Grokster calls it quits shuts down it's P2P network
Posted by Dan Bell on 07 November 2005 - 21:01 - Source: Grokster home page
And another one bites the dust. The United States Supreme Court was there, holding Groksters feet to the fire for actions of it's end users. They couldn't take the heat (who can?) and threw in the proverbial towel today after settling with the "entertainment industries".
The United States Supreme Court nanimously confirmed
that using this service to trade copyrighted material is illegal.
Copying copyrighted motion picture and music filesusing unauthorized peer-to-peer services is illegal and isprosecuted by copyright owners.
There are legal services for downloading music and movies. This service is not one of them.
Grokster hopes to have a safe and legal service available soon.
If you are interested in that service, go to www.grokster3g.com, or send an email to:
info@grokster3g.com
to be included in the beta for the next generation.
Ouch! To discuss this latest legal news and other peer to peer subjects, please feel free to visit the Music Download, Peer to Peer (P2P) & Legal Issues forums.
http://www.cdfreaks.com/news/12646
Last waltz for Grokster
By John Borland
Staff Writer, CNET News.com
Published: November 7, 2005, 12:10 PM PST
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File-swapping company Grokster has agreed to stop distributing its peer-to-peer software following a legal settlement with Hollywood studios and record labels announced Monday.
Along with co-defendant StreamCast Networks, Grokster had been accused by the music and movie industries of contributing to widespread copyright infringement by people who used its software to download songs and films. Monday's settlement comes four months after the U.S. Supreme Court ruled substantially in the entertainment companies' favor.
Under terms of the agreement, Grokster will immediately stop supporting its file-swapping software or the associated peer-to-peer network. The parties will submit the settlement agreement in a Los Angeles federal court on Monday for approval by a judge.
"This settlement brings to a close an incredibly significant chapter in the story of digital music," Mitch Bainwol, CEO of the Recording Industry Association of America, said in a statement. "This is a chapter that ends on a high note for the recording industry, the tech community and music fans and consumers everywhere."
Although a significant step toward bringing the four-year legal case to a close, the lawsuit is not over yet. Grokster's co-defendant, Morpheus parent StreamCast Networks, remains operating, and it has previously indicated that it would continue fighting the case in lower courts.
Still, Grokster's settlement could put more pressure on StreamCast and other file-swapping services to settle with the copyright companies.
A Grokster attorney declined to provide additional details on the settlement or on the future of the company.
"The brand will live on," said attorney Michael Page. "It is shut down, but we look forward to launching a licensed, legal new version of Grokster."
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A source close to the company said that the file-swapping network's assets would be acquired by Mashboxx, a legal peer-to-peer network supported by the record labels that is close to launching, and which was founded by former Grokster President Wayne Rosso. The new Grokster will essentially be a rebranded version of that Mashboxx service, the source said.
Visitors to Grokster's Web page on Monday were met with a terse explanation of why the software was no longer available, citing June's Supreme Court ruling, and a promise that a new version would come.
